“India suffered a major terrorist event in Mumbai.

Though, previous attacks have been equally severe in terms of fatalities, the nature of this attack and the targets may signal the new direction for terrorism on the subcontinent,” WEF noted in its latest report titled 'Global Risks 2009'.

According to the report, the terror attacks in Mumbai and “the potential for instability in Pakistan, with its troubled borders with Afghanistan and India, the world must remain on alert about events in this region, dominated by two nuclear powers and, if necessary, ready to act in an aligned manner.

The Forum has pointed out that even though the previous attacks in India have been severe in terms of fatalities, the nature of the Mumbai terror strikes and the targets chosen, might signal a new direction for terrorism in the subcontinent.

On the other hand, WEF has identified deteriorating fiscal positions, asset price collapse, global governance gaps and challenges related to resources, as major risks for 2009.